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A Wall of Silence

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A Wall of Silence A WALL OF SILENCE: THE CONSTRUCTION SECTOR'S RESPONSE TO MIGRANT RIGHTS IN QATAR AND THE UAE EXECUTIVE SUMMARY 1 INTRODUCTION 3 THE COMPANY SURVEY 4 FINDINGS 4 DISCUSSION OF THE 16 CORPORATE RESPONSE RECOMMENDATIONS 18 FULL COMPANY LIST 19 EXECUTIVE SUMMARY An estimated 7% of the world’s workforce is spurred by the Qatar World Cup has resulted in a employed in the construction sector and the concerted focus on the industry and its business industry is expected to account for 15% of global partners from international institutions, govern- economic output by 2030. Qatar and the UAE are ments, media and civil society. These actors will witnessing remarkably rapid infrastructure continue to shine a spotlight where the industry development, boosted by the 2022 World Cup refuses to do so. and the 2020 Dubai World Expo respectively. The responses we did receive reveal the wide Global inequality is perhaps at its starkest in the gulf of understanding and commitment between construction of gleaming skyscrapers and mas- pioneering companies and a long tail of laggards. sive stadiums by migrant workers in the pursuit of Several companies are taking meaningful steps decent livelihoods. Exploitation of the majority to demonstrate the actions they are taking to migrant workforce in both Qatar and the UAE has improve safeguards for their migrant workforce, been well documented, but the situation for including Vinci (QDVC),2 Multiplex, Salini workers has been slow to improve and planned Impregilo, Laing O’Rourke, Interserve reforms widely criticized for being insufficient. and Carillion. The abuses that migrant workers are subject to, Transparency on human rights issues has been including high recruitment fees, non-payment an important driver of progress in other sectors. of wages, and restricted mobility, traps them in It generates examples of best practice that can exploitative situations. Earlier this year, the media be shared publicly with others and replicated, and reported an Indian worker's suicide on a building drives accountability such that civil society, site in Qatar, cementing concerns over the investors and others can hold companies to their desperate situations migrant construction workers stated actions, or call them out for inaction. face if subject to unscrupulous employment practices.1 It is therefore disappointing that companies in- volved in the construction of World Cup stadiums Despite the spotlight on these abuses, our did not respond, including Al Balagh Trading & outreach to 100 construction companies has Contracting, Cimolai, Galfar Al Misnad, HBK found a shocking lack of transparency on the Contracting Company, J&P Avax SA, steps they are taking to address them. Only Joannou & Paraskevaides (Overseas), Mid- 22 responded to our survey on the subject (17 mac and Porr. The lack of response represents construction contractors, 4 project management/ a missed opportunity to demonstrate the actions engineering consultants and 1 developer). A they are taking to adhere to the Workers’ Welfare review of these companies’ websites reinforces Standards of Qatar’s Supreme Committee for the magnitude of omission when it comes to Delivery & Legacy. migrant rights in the construction sector. Just 39% have publicly available human rights It is similarly disappointing that regional construc- commitments and only 17% refer to any tion heavyweights with active projects in Qatar international standards. Just 3% have an explicit and the UAE – Arabtec, BK Gulf (a subsidiary commitment to the rights of migrant workers. of UK-headquartered Balfour Beatty), Habtoor Leighton Group, and Al Jaber Group – did not The 78 non-responding companies cannot rely on respond, despite the three former companies re- a wall of silence to escape scrutiny. The attention ceiving the UAE’s 2016 Taqdeer Award for excel- to the human-rights performance of the sector lence in labour relations. 1 https://business-humanrights.org/en/qatari-subsidiary-of-eta-star-ascon-group-failing-to-pay-migrant-workers-leaving-them-stranded-as- the-gulf-country-struggles-to-juggle-its-ambitions-for-the-2022-world-cup-with 2 VINCI (QDVC) operates in Qatar through QDVC, a Qatari Shareholding Company incorporated under the Law of Qatar since April 2007. Qatar Diar Real Estate Investment Company is 51% shareholder in the company and VINCI (QDVC) Construction Grand Projects is the shareholder of the remaining 49%. 1 Recent national attention to migrant workers’ compliance is subsequently monitored through rights in the Gulf has focused on driving improve- audits and ‘worker engagements’. The risks in- ments in health and safety, worker accommo- herent in accepted business models and complex dation and payment of wages. Now it is time for supply chains, however, cannot be resolved by concerted action in other critical areas such as companies acting in isolation: collective industry- fair recruitment, freedom of movement, worker wide efforts will also be needed. voice, and supply chain accountability. In each of these areas our outreach identifed examples of Some companies have also demonstrated action that other companies can follow. welcome engagement with international trade unions. Given that freedom of association is not For example, on freedom of movement, Vinci permitted within Qatar and the UAE, this can (QDVC) and Laing O’Rourke provide secure, be an important way to provide a degree of civil personal storage compartments at their accom- society oversight. Salini Impregilo has signed an modation facilities so that migrant workers have agreement with Building and Woodworkers In- sole custody of their passports. On recruitment, ternational (BWI) and Italian construction unions seven companies stated that they follow the to promote and respect the fundamental human employer pays principle with regards to recruit- rights of its workers worldwide, and has allowed ment fees. Laing O’ Rourke, Multiplex, Salini BWI to visit its worker accommodation in Qatar. Impregilo, SNC-Lavalin and Vinci (QDVC) said that they ensure migrant workers are reimbursed Committed and concerted action by the con- by the company or recruitment agency in the struction industry holds the potential to prevent event that they have been made to pay fees. exploitation and drive genuine improvements in the lives of millions of workers around the world. Another six companies stated that they would terminate their business relationships with recruit- While our outreach has identified some promising ing agencies that violate their terms. Carillion, leading examples, the entire sector has a long Laing O’Rourke and Salini Impregilo pointed to way to travel to fulfill its human rights t can draw important lessons a global policy on freedom of association and to responsibilities. I providing workers in their Gulf operations with from sectors that have long been scrutinized for alternative means of expression and collective supply chain risk, such as the apparel, food and organising through worker welfare committees. electronics industries. Within Europe, the UK’s Modern Slavery Act has A significant challenge facing the industry is the played an important role in kick-starting action by complexity of its supply chains. As the head the sector 4 t is striking that of the 22 responses of the UK’s Chartered Institute of Building has . I we received, 11 are from companies acknowledged: “[T]he global trend towards out- headquar sourcing and cut price contracting makes it easy tered in Europe where the influence of has been felt more strongly. for main contractors to duck out of their responsi- the Act bilities.” 3 Conversely, only three companies headquartered in the Gulf responded and none headquartered in In that vein it is encouraging that some frms are Asia (we approached companies based in China, taking steps to strengthen accountability down India, Japan, Malaysia and South Korea). There the supply chain. Interserve has instituted a is an urgent need to strengthen the competitive Worker Welfare Procedure that requires subcon- advantage for construction firms from all regions tractors and suppliers to pre qualify on the basis - to take a responsible approach to the recruitment of their employee welfare practices; their and employment of migrant workers. 3 The Chartered Institute of Building (CIOB), 2015. Modern Slavery: The Dark Side of Construction. Available at: https://policy.ciob.org/ wp-content/uploads/2016/02/CIOB-Research-The-Darkside-of-Construction.pdf. 4 The Act requires every organisation with a global annual turnover of £36 million with operations in the UK to produce a slavery and human trafficking statement for each financial year. View the BHRRC MSA registry here: https://business-humanrights.org/en/uk-modern- slavery-act-registry 22 Business partners and civil society actors should migrant workers and drawing attention to press for increased transparency from compa- discrepancies between reporting and nies, rewarding those that take a responsible implementation and company inaction. approach to the recruitment and employment of Companies should: Adopt a public human rights Take urgent action to protect Ensure workers have access commitment and conduct migrant workers in key risk to individual and collective robust due diligence. areas. grievance mechanisms. INTRODUCTION An estimated 7 percent of the world’s workforce construction labour in the Gulf (see Annex 1). is employed in the construction sector, an indus- Workers often fall victim to: try that represents US$ 9 trillion globally and is expected
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